New Zealand Currency

New Zealand Currency

New Zealand Currency slides after the country entered three days of closure

New Zealand Currency: The limitations are due to Covid’s one-off expectations for rising central bank rates

The New Zealand dollar fell on Tuesday after the discovery of a single case of coronavirus that sparked a three-day nationwide closure.

Prime Minister Jacinda Ardern announced the restrictions, which would mean closing schools, offices and businesses, after an Auckland man was diagnosed with Covid-19, the first evidence of the virus spread in February.

“I want to reassure New Zealand that we have addressed this problem. Hard work and timely work for us in the past, ”Ardern told a news conference. “We have seen the negative effects of taking too long to do something in other countries.”

Auckland, where the outbreak occurred, and the Coromandel Peninsula are likely to remain closed for the next seven days.

This comes on the day before the announcement of the policy by the Reserve Bank of New Zealand, which has been widely expected to be the first bank in the developed world to raise interest rates since the outbreak began.

Traders responded by depositing money through the RBNZ’s currency tightening, withdrawing money that had been withdrawn in recent weeks by the magnificent central bank.

Markets are projected by 75 percent inflation to 0.5% on Wednesday. The move was priceless before the Auckland Covid trial was announced.

“My hunt is that they will continue to seek it, but they have challenged this decision with the most cautious direction regarding what is to come,” said Derek Halpenny, head of research at global markets at MUFG.

The New Zealand dollar depreciated by 1.3 percent to $ 0.693, as its biggest daily fall since May is nearly nine months low.

“If a short, sharp closure works, we may be back to where we were,” said Kit Juckes, chief strategist at Société Générale. “But we do not yet know if this is the case for Delta and whether they will have difficulty coping. It does not take a rocket scientist to come up with a situation where everything changes by looking at the RBNZ. ”

The retreat to New Zealand underscored the threat posed by the virus in an attempt to reverse the regenerative methods used to fight the disease.

The Australian dollar depreciated on Tuesday after its central bank published a set of extra minutes in its latest policy meeting. Although the Reserve Bank of Australia has this month adhered to plans to reduce its weekly purchases, minutes have shown it is ready to participate if the closure closes threaten economic recovery.

The price decreased by 0.7 percent to $ 0.728, its lowest level since November last year.

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